Do you need flood insurance in Vermont?
If you are a homeowner, you have probably heard the trusty old flood insurance spiel whether it was from your insurance agent or from your mortgage company.
“You need flood insurance”
“My home could never be flooded”
“You’re in a flood zone”
“That’s impossible. The water has never even come close to my property”
Flood insurance has got to be one of the more difficult conversations that takes place between insurance agents and the homeowner. It is a difficult topic to navigate and to understand but, the bottom line is that we all do our best!
What is flood insurance and what does it protect?
Flood insurance protects the homeowner from damages to the home and it's contents due to temporary overflow of water on a normally dry land brought on by landslides, hurricanes, earthquakes or other natural disasters. The following items are what flood insurance generally covers:
- The home and the foundation
- Electrical and plumbing systems
- Furnaces, central AC equipment, portable AC units and water heaters
- Built-in appliances such as dishwashers, refrigerators and stoves
- Wall-to-wall carpeting and other carpets
- Permanently installed paneling, wallboard, bookcases and cabinets
- Window blinds and curtains
- Detached garages, though other detached buildings require a separate policy
- Debris removal
- Your personal belongings: clothes, furniture and electronic equipment
- Portable microwave ovens and dishwasher
- Washers and dryers
- Freezers and food in them
- Expensive belongings such as artwork and furs (up to $2,500)
Now, there is a lot that flood insurance is not going to cover and there are payout caps on the policies. For a National Flood Insurance Program (NFIP) policy, there is generally a limit of $250,000 for residences, $100,000 for personal possessions and $500,000 for commercial property. There are policies you can obtain through private insurers who will cover the excess value that the NFIP policy does not cover.
Do you need flood insurance?
Don't let someone decide for you. Take a second and speak with your agent to get a quote and make a decision on your own. You might be surprised just how affordable it is! The NFIP determines where the flood zones are across the country. When proceeding through the quote process, the NFIP rater will help us determine if indeed you are in a flood zone and how severe that flood zone is. Which will also help determine the premium for the policy.
Even if you think your home is not in a flood zone, it would be in your best interest to check with your agent and have them obtain a flood insurance quote for you anyway. In some cases, even if you are not in a flood zone you may want to have a flood insurance policy. This is a great conversation to have with your insurance agent.
If you want to learn more about flood insurance and how we can help, make is simpler for you don't hesitate to reach out!